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The British government has indicated that there will not be a re-run of the BREXIT referendum even though they received from over 4 million people an e-petition asking that one be allowed — the most signed petition of its kind. The historic vote was so close that there was a chance for a second round given the turnout less than 75%.
The shocking outcome of the British referendum, a vote to leave the European Union (EU) has definitely impacted Europe and across the globe. Its implications may be far more than it was predicted and may well be resonated even though there would be no discussions over British withdrawal from the EU until Britain formally invokes Article 50. The aftermath brought uncertainty in the markets worldwide, more so in the UK markets however the major indices in the US have recovered in the following days. Though the UK referendum was non-binding, it is now expected that the UK government will follow through with the will of the people. The UK exit is likely to be at least a two-year process, with political and economic uncertainty around the exit negotiations likely to persist for months, if not years.
Logistically, BREXIT is unlikely to be a quick process. First, UK leaders must agree on a policy for exit, which may take many months to begin with and then notify the EU of the UK’s official intent to leave. It is expected that the UK exit from the EU is unlikely to occur before 2019. The effects of the BREXIT in the near term are likely to be limited since global central banks are likely to do what is necessary to attempt to limit the near-term financial market ramifications that BREXIT poses, but the ultimate impacts of BREXIT will rest on politicians (particularly in the UK and EU) working together and having a constructive tone on what a post-BREXIT world will look like.
While Brexit is without doubt a negative for global growth and is expected to produce some drag on the global economy, the question remains as to what the EU will come up with in the near future to make the pan-European countries an ever closer union.